CALGARY, ALBERTA--(Marketwired - Nov. 10, 2017) - Petrus Resources Ltd.
("Petrus" or the "Company") (TSX:PRQ) is pleased to report financial and
operating results for the third quarter of 2017. Petrus is focused on organic
growth and infrastructure control in its core area, Ferrier, Alberta. The
Company is targeting liquids rich natural gas in the Cardium formation as well
as investing in infrastructure in Ferrier to control operations in order to
maximize the Company's return on investment. The Company's Management's
Discussion and Analysis ("MD&A") and interim consolidated financial statements
dated as at and for the period ended September 30, 2017 are available on SEDAR
(the System for Electronic Document Analysis and Retrieval) at www.sedar.com.

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-- Petrus generated funds flow of $7.7 million in the third quarter of

2017, a 30% increase relative to the $5.9 million generated in the third
quarter of 2016. The 30% increase in funds flow is attributed to 49%
higher production and 11% lower operating expenses (on a per boe basis)
from the prior year. This production growth and lower cost structure
reflects the Company's strategic shift to focus on developmental
drilling and facility ownership and control in the Ferrier area.
-- Third quarter average production was 10,567 boe/d in 2017 compared to
7,100 boe/d for the same period in 2016. The 49% increase is
attributable to the Company's drilling program at Ferrier, where
production has grown 110% since the third quarter of 2016.
-- Total operating expenses have decreased 11% from $6.04 per boe in the
third quarter of 2016 to $5.42 per boe in the third quarter of 2017. Due
to facility constraints, a portion of the Company's Ferrier production
was processed through third party facilities during the third quarter of
2017. Ferrier operating expenses are expected to decrease further in the
fourth quarter as the Ferrier gas plant expansion is now complete(1).
-- Petrus utilizes financial derivative contracts to mitigate commodity
price risk. The Company's realized gain on financial derivatives in the
third quarter of 2017 increased the Company's corporate netback(2) by
$1.88 per boe. The realized hedging gain increased significantly from
the $0.23 per boe realized in the second quarter of 2017 to $1.88 per
boe in the third quarter of 2017. The increase is attributed to the
recent volatility in commodity prices, natural gas in particular. As a
percentage of third quarter 2017 production, Petrus has derivative
contracts in place for 60% and 70% of its natural gas and oil and
natural gas liquids production, respectively, up to the end of the next
fiscal year.
-- During the third quarter Petrus entered into a farm-in agreement (the
"Farm-in Agreement") to drill two extended reach horizontal ("ERH")
Cardium wells in Ferrier. Upon completion of these wells, Petrus will
also earn a working interest in three additional sections of land in
Ferrier. Subsequent to the end of the third quarter, the ERH wells were
each drilled with a lateral length of approximately 2 sections. The
Company estimates the Farm-in Agreement will contribute 16 gross (5.2
net) Cardium locations to its drilling inventory(1).
-- In order to accommodate for the Farm-in Agreement, Petrus' Board of
Directors approved a $10 million increase to the Company's capital
budget for 2017 to a range of $60 to $70 million, from the $50 to $60
million previously approved. The budget increase is expected to be
funded through availability under the Company's existing credit
facilities(1).
-- During the third quarter of 2017, Petrus participated in or spud 6 gross
(4.7 net) Cardium wells in the Ferrier area. The Ferrier gas plant
expansion, increasing the plant's capacity from 30 mmcf/d to 60 mmcf/d,
was completed in early October. With the new processing capacity
available at the plant, the fracture stimulation operations for the new
wells were scheduled for the fourth quarter. The wells are expected to
be brought onstream later in the fourth quarter(1).
-- Subsequent to the end of the third quarter of 2017 Petrus completed the
semi-annual review of its revolving credit facility ("RCF"). The RCF
syndicate of lenders increased the borrowing base from $120 million to
$130 million. In addition, the Company's total debt borrowing limit was
increased from $141 million to $155 million. Petrus' second lien term
loan ("Term Loan") has $35 million outstanding therefore lender consent,
from both the RCF syndicate and Petrus' Term Loan lender, is required
for total borrowings against the RCF that exceed $120 million.

(2) In prior periods Petrus included realized gain on derivatives (hedging gain
(loss)) in the calculation of operating netback. The amount is included in the
calculation of corporate netback. The comparative information has been
re-classified to conform to current presentation.

(3) In prior periods Petrus excluded decommissioning expenditures from the
calculation of funds flow. The comparative information has been re-classified
to conform to current presentation.

Third quarter average production was 10,567 boe/d (72% natural gas) in 2017
compared to 7,100 boe/d (70% natural gas) in the third quarter of 2016. The 49%
increase is attributable to the Company's drilling program in its core
operating area, Ferrier, where production has grown 110% since the third
quarter of 2016.

Commodity Pricing

During the third quarter of 2017, Petrus realized high volatility in the market
price of its natural gas revenue as a result of weakness and volatility in the
Alberta natural gas commodity price market. In particular, there was high
volatility in the daily average natural gas spot price (AECO 5A index) which is
the index on which Petrus sold all of its natural gas in the third quarter of
2017. Due to market factors outside the Company's control, the AECO 5A natural
gas price averaged $1.38 per GJ during the third quarter of 2017, which is 28%
lower than the third quarter 2017 average forward monthly (AECO 7A index)
natural gas price of $1.93 per GJ. During the third quarter of 2017 Petrus'
realized natural gas price was $1.66 per mcf which is 50% lower than the $3.29
per mcf realized in the second quarter of 2017. Beginning in November 2017,
Petrus has elected for approximately half of its natural gas production to be
paid on the forward monthly natural gas price (AECO 7A index) in an attempt to
reduce the Company's exposure to daily natural gas price volatility.

Ferrier Farm-In

During the third quarter Petrus entered into a farm-in agreement (the "Farm-in
Agreement") to drill two extended reach horizontal ("ERH") Cardium wells in
Ferrier, the Company's core operating area. Upon completion of these wells,
Petrus will earn a working interest in three additional sections of land in
Ferrier. Subsequent to the end of the third quarter, the ERH wells were drilled
with a lateral length of approximately two sections. The Company estimates that
the Farm-in Agreement will contribute 16 gross (5.2 net) Cardium locations to
its drilling inventory(1).

Capital Development

In order to accommodate for the Farm-in Agreement, Petrus' Board of Directors
approved a $10 million increase to the Company's capital budget for 2017 to $60
to $70 million, from the $50 to $60 million previously approved. The budget
increase is expected to be funded through availability under the Company's
existing credit facilities. The Company's capital expenditure program
anticipates drilling 16 gross (11.8 net) Cardium wells in Ferrier. The capital
expenditure program also provides for investment in facility expansion(1).

Petrus has spud or participated in 6 gross (4.7 net) Cardium wells in the
Ferrier area since the end of the second quarter of 2017. The Ferrier gas plant
expansion, increasing the plant's capacity from 30 mmcf/d to 60 mmcf/d, was
completed in early October. With the new processing capacity available at the
plant, the fracture stimulation operations for the new wells were scheduled for
the fourth quarter. The wells are expected to be brought onstream later in the
fourth quarter(1).

Property Acquisition & Disposition Activity

On August 15, 2017 Petrus closed the disposition of its working interest in
certain non-core oil and natural gas properties in the Company's Foothills area
for cash consideration of $4.9 million. The assets disposed of included
approximately 150 boe/d of production along with related land and
infrastructure. The proceeds were utilized to repay indebtedness under the
Company's credit facilities.

Petrus has initiated a non-core asset divestiture process for its Central
Alberta (Thorsby) and Foothills areas, and has engaged GMP Securities L.P.
("GMP FirstEnergy") as its exclusive financial advisor to assist with the
process. Through the divestiture process, the Company's Board of Directors
determined its Foothills assets' characteristics do not fit within the
strategic objectives of the Company. As a result, Petrus recognized an
impairment loss of $45.0 million related to the Foothills Cash Generating Unit
("CGU") for the three and nine month periods ended September 30, 2017. The
divestiture of these non-core assets is expected to further enhance Petrus'
balance sheet and continue to strengthen the focus on the Company's core
operating area, Ferrier(1).

Credit Review

Subsequent to the end of the third quarter of 2017 Petrus completed the
semi-annual review of its revolving credit facility ("RCF"). The RCF syndicate
of lenders increased the borrowing base from $120 million to $130 million. In
addition, the Company's total debt borrowing limit was increased from $141
million to $155 million. Petrus' second lien term loan ("Term Loan") has $35
million outstanding therefore lender consent, from both the RCF syndicate and
Petrus' Term Loan lender, is required for total borrowings against the RCF that
exceed $120 million.

Financial data presented above has largely been derived from the Company's
financial statements, prepared in accordance with GAAP which require publicly
accountable enterprises to prepare their financial statements using IFRS.
Accounting policies adopted by the Company are set out in the notes to the
audited financial statements as at and for the twelve months ended December 31,
2016. The reporting and the measurement currency is the Canadian dollar. All
financial information is expressed in Canadian dollars, unless otherwise stated.

Forward-Looking Statements

Certain information regarding Petrus set forth in this MD&A contains
forward-looking statements within the meaning of applicable securities law,
that involve substantial known and unknown risks and uncertainties. The use of
any of the words "anticipate", "continue", "estimate", "expect", "may", "will",
"project", "should", "believe" and similar expressions are intended to identify
forward-looking statements. Such statements represent Petrus' internal
projections, estimates or beliefs concerning, among other things, an outlook on
the estimated amounts and timing of capital investment, anticipated future
debt, production, revenues or other expectations, beliefs, plans, objectives,
assumptions, intentions or statements about future events or performance. These
statements are only predictions and actual events or results may differ
materially. Although Petrus believes that the expectations reflected in the
forward-looking statements are reasonable, it cannot guarantee future results,
levels of activity, performance or achievement since such expectations are
inherently subject to significant business, economic, competitive, political
and social uncertainties and contingencies. Many factors could cause Petrus'
actual results to differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, Petrus.

In particular, forward-looking statements included in this MD&A include, but
are not limited to, statements with respect to: the availability of cash flows
from operating activities; expected timing of completion of the expansion of
the Ferrier gas plant and the resulting processing and compression capacity at
the Ferrier gas plant and expectations of decreased operating expense; sources
of financing and the requirement therefor; the growth of Petrus and the
availability of the full amount of the revolving credit facility; the treatment
of the revolving credit facility following the end of the revolving period;
Petrus' ability to fund its financial liabilities; the size of, and future net
revenues from, crude oil, NGL (natural gas liquids) and natural gas reserves;
future prospects; the focus of and timing of capital expenditures; expectations
regarding the timing for bringing new wells on production; expectations
regarding the ability to raise capital and to continually add to reserves
through acquisitions and development; access to debt and equity markets;
projections of market prices and costs; the performance characteristics of the
Company's crude oil, NGL and natural gas properties including estimated
production; crude oil, NGL and natural gas production levels and product mix;
Petrus' future operating and financial results; capital investment programs;
supply and demand for crude oil, NGL and natural gas; future royalty rates;
drilling, development and completion plans and the results therefrom; and
treatment under governmental regulatory regimes and tax laws. In addition,
statements relating to "reserves" are deemed to be forward-looking statements,
as they involve the implied assessment, based on certain estimates and
assumptions, that the reserves described can be profitably produced in the
future.

This MD&A discloses drilling locations, which are unbooked locations based on
Petrus' prospective acreage and internal estimates as to the number of wells
that can be drilled per section. Unbooked locations do not have attributed
reserves or resources (including contingent and prospective). Unbooked
locations have been identified by management as an estimation of the Company's
multi-year drilling activities based on evaluation of applicable geologic,
seismic, engineering, production and reserves information.

There is no certainty that the Company will drill any unbooked drilling
locations and if drilled there is no certainty that such locations will result
in additional oil and gas reserves, resources or production. The drilling
locations on which the Company will actually drill wells, including the number
and timing thereof is ultimately dependent upon the availability of funding,
regulatory approvals, seasonal restrictions, oil and natural gas prices, costs,
actual drilling results, additional reservoir information that is obtained and
other factors. While certain of the unbooked drilling locations have been
de-risked by drilling existing wells in relative close proximity to such
unbooked drilling locations, the majority of other unbooked drilling locations
are farther away from existing wells where management has less information
about the characteristics of the reservoir and therefore there is more
uncertainty whether wells will be drilled in such locations and if drilled
there is more uncertainty that such wells will result in additional oil and gas
reserves, resources or production.

These forward-looking statements are subject to numerous risks and
uncertainties, most of which are beyond the Company's control, including the
impact of general economic conditions; volatility in market prices for crude
oil, NGL and natural gas; industry conditions; currency fluctuation;
imprecision of reserve estimates; liabilities inherent in crude oil and natural
gas operations; environmental risks; incorrect assessments of the value of
acquisitions and exploration and development programs; competition; the lack of
availability of qualified personnel or management; changes in income tax laws
or changes in tax laws and incentive programs relating to the oil and gas
industry; hazards such as fire, explosion, blowouts, cratering, and spills,
each of which could result in substantial damage to wells, production
facilities, other property and the environment or in personal injury; stock
market volatility; ability to access sufficient capital from internal and
external sources; completion of the financing on the timing planned and the
receipt of applicable approvals; and the other risks. With respect to
forward-looking statements contained in this MD&A, Petrus has made assumptions
regarding: future commodity prices and royalty regimes; availability of skilled
labour; timing and amount of capital expenditures; future exchange rates; the
impact of increasing competition; conditions in general economic and financial
markets; availability of drilling and related equipment and services; effects
of regulation by governmental agencies; and future operating costs. Management
has included the above summary of assumptions and risks related to
forward-looking information provided in this MD&A in order to provide
shareholders with a more complete perspective on Petrus' future operations and
such information may not be appropriate for other purposes. Petrus' actual
results, performance or achievement could differ materially from those
expressed in, or implied by, these forward-looking statements and, accordingly,
no assurance can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do so,
what benefits that the Company will derive therefrom. Readers are cautioned
that the foregoing lists of factors are not exhaustive.

There are no assurances or guarantees that the non-core asset divestiture
process will result in a sale of such assets or, if a sale is undertaken, what
the terms or timing of such a sale will be.

These forward-looking statements are made as of the date of this MD&A and the
Company disclaims any intent or obligation to update any forward-looking
statements, whether as a result of new information, future events or results or
otherwise, other than as required by applicable securities laws.

BOE Presentation

The oil and natural gas industry commonly expresses production volumes and
reserves on a barrel of oil equivalent ("boe") basis whereby natural gas
volumes are converted at the ratio of six thousand cubic feet to one barrel of
oil. The intention is to sum oil and natural gas measurement units into one
basis for improved measurement of results and comparisons with other industry
participants. Petrus uses the 6:1 boe measure which is the approximate energy
equivalence of the two commodities at the burner tip. Boe's do not represent an
economic value equivalence at the wellhead and therefore may be a misleading
measure if used in isolation.

All press releases are written by the client and have NO affiliation with the news copy written by The Canadian Press. Any questions that arise due to the content or information provided in the press release should be directed to the company/organization
issuing the release, not to The Canadian Press.

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